Automotive Industry Digest

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Politics and regulation

Transport Committee report ignores public policy failures, says Logistics UK   

The report into Road Freight Supply Chains published today (1 June 2022) by the Transport Select Committee combines many complex issues in an attempt to blame the industry for problems encountered across the supply chain for shortages in food and other products, according to Logistics UK.

As David Wells OBE, Chief Executive at Logistics UK (the industry’s biggest business group) explains, the sector has worked tirelessly throughout the pandemic to protect the supply chain. However, blame for the issues faced by the sector has been unfairly placed at the industry’s door:

“Logistics workers are the unsung heroes of the COVID-19 pandemic, keeping shops, schools, hospitals and locked-down families supplied with all the goods and medicines the country needed,” he says.  “To place all the blame for the supply chain issues facing our industry at our door does our workers a great disservice, and totally ignores the role which the government and other agencies have played in creating staff recruitment and retention problems across the sector.

“Despite operating on incredibly narrow margins – often of less than 1% – our sector has already made significant investment in the next generation of workers through the Apprenticeship Levy with £700m paid in by our industry to date. However, due to a lack of appropriate qualifications for the sector, which did not even exist until 2021, only £150 million has been able to be drawn down thus far, representing a tax on our sector and a huge, missed opportunity for recruitment.

“It is also a national disgrace that thousands of HGV drivers, which have worked so tirelessly to protect the supply chain during the pandemic, are still unable to access suitable safe and secure truck stops across the country, with many forced to take their legally mandated rest breaks on the side of roads, something which Logistics UK has campaigned on for many years.  It is not the industry’s responsibility to build and run these facilities, not least because they are commercial enterprises, many of which cater for all road users and not just the haulage sector. The real problem that has not been resolved is local authority planning rules and red tape that prevent these facilities being built in the first place. To suggest that these new builds, which are used by all road users, could be constructed as a result of a levy on hauliers would place an unfair, disproportionate burden on the industry.

“The report’s overview of the sector’s recruitment issues is confused and misleading. Like nearly every other industry in the UK, logistics is facing issues caused by a combination of factors, none of which are within its’ control. These include an ageing workforce, the loss of European workers after Brexit and the impact of the COVID-19 pandemic on testing of new HGV drivers.   The industry has already come together to create and fund a massive skills and recruitment campaign, aimed at young people, women and other under-represented groups, to attract new talent into the sector. The government is aware of this and has committed to supporting the industry’s efforts.”

Wells concludes: “It’s disappointing that the Committee has taken so long to reach the wrong conclusions and not address the real public policy issues needing urgent attention.”

 

Logistics UK is one of the UK’s leading business groups, representing logistics businesses which are vital to keeping the UK trading, and more than seven million people directly employed in the making, selling and moving of goods. With COVID-19, Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. Logistics UK supports, shapes and stands up for safe and efficient logistics, and is the only business group which represents the whole industry, with members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods. For more information about the organisation and its work, including its ground-breaking research into the impacts of COVID-19 on the whole supply chain, please visit logistics.org.uk

*Article Source www.logistics.org.uk

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